Almonds: Imports will dominate the market again
September 7, 2017 at 2:36 PM ,
Starry Night Ltd.
SOFIA. Even though, on average, farmers expect a higher output this year, it will be again a drop in the ocean of local demand. Once again, the local market will be flooded with Californian almonds.
Almonds: predominantly many scattered farms of a few hectares
Almond orchards are not as widespread throughout the country as walnut ones are since the country lacks the long cultivation tradition of growing the nut throughout the years. The almond has always been considered an exclusive crop, and as a result, its price has always been higher than that of other locally grown nuts; indeed, that of organic almonds!
Throughout the recent years, farmers have substantially allocated more land for almond orchards, but it takes several years before a tree could supply marketable almonds. However, there are many scattered orchards mainly within the Southeast parts of the country, but the majority of them are of a few hectares. The farmers of such orchards sell nuts locally since they lack capacity for export in larger volumes. Since supply of locally grown marketable almonds is small on a yearly basis, farmers easily charge a premium price and the market accepts it. On the international market, they will realize smaller margins, even if they decided to export.
An orchard of more than a hundred hectares is considered a big market player, but because local supply is small in comparison with local demand, the bigger player could not influence local prices, at all. As a result, the smaller farmers are far away from being price takers. The largest orchards are usually certified organic and their crops are mainly exported.
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